CDL invests 900m yuan in Shanghai office project

PROPERTY heavyweight City Developments Limited (CDL) through its fully-owned subsidiary, CDL China, has entered into an equity transfer agreement to buy a prime Shanghai office project for a total transaction value of 900 million yuan (S$186 million).

The acquisition will be made through the purchase of the entire equity stake in Shanghai Meidao Investment Co - which owns the commercial development known as Meidao Business Plaza in Shanghai's Hongqiao CBD.

Meidao Business Plaza, with total gross floor area of around 32,300 square metres, is in the final stages of construction and is expected to be completed by the second half of this year. The project comprises five office towers (each nine storeys high) and two levels of basement carpark with 351 lots.

CDL said the acquisition will boost its recurring income stream.

The 900 million yuan total transaction value is for the equity as well as the loans of Shanghai Meidao Investment Co and may be subject to further adjustment as set out in the agreement.